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Home Business

City of Johannesburg paralysed female-owned enterprise

Ronnie Daniels by Ronnie Daniels
February 13, 2019
Reading Time:2min read
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A multimillion-rand tender with the City of Johannesburg (COJ) – that had the capacity to be one of the excellent stories of government’s vision to empower black women – has gone sour and the city is being sued R8 million for now not honoring the contract.

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Faithfulness Business Enterprise changed into provided a contract to supply and deliver protective footwear for contributors of the metro police branch – JMPD – valued at R23.760 million over 3 years in 2014.

In accordance with the smooth, the company, in the end, spent thousands and thousands of rands and employed an extra group of workers to supply on its contractual duties.

However, the metropolis placed most effective a single order for R660 000 in December 2014 after which positioned orders with different suppliers, leaving the organization with a mountain of costs and no orders.

Two years into the agreement and a single order later, the city implemented to the Johannesburg High Court, in search of to terminate the service stage agreement on the basis that the soft technique was unsuitable and that there have been some of the irregularities.

However, not one of the alleged irregularities became associated with the company or because of its influence.

The court docket dismissed with fees of the city’s application in February closing yr and upheld the service level settlement as binding and valid.

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But the town nonetheless did no longer location any orders with the business enterprise.

The enterprise took the metropolis to court to recoup its losses, which it, first of all, envisioned at R17 million, but after being audited amounted to R8.666 million.

In a letter of demand despatched to the town, the organization stated it had suffered damages amounting to more than R17 million in appreciate of condominium expenditure incurred in leasing premises appropriate for the garage and sorting of the reduced in size quantities of shoes; salaries and wages of team of workers who have been hired to ensure the capability to meet the future orders; stationery and printing prices; automobile charges, workplace equipment; and lack of income.

Speaking to City Press, Selina Siganga, owner of Faithfulness Business Enterprise, stated the gentle had left her worse off and had paralyzed her enterprise.

“Because of that contract, the banks elevated the overdrafts and now I ought to deal with them. I have needed to lay off human beings I had hired and needed to negotiate with them no longer to take me to the Commission for Conciliation, Mediation and Arbitration due to the fact I turned into paying their salaries but no longer getting orders.

“This government always says it wants to help a black lady in commercial enterprise and desires employment [to create jobs] but it’s miles killing us,” she stated.

A spokesperson for the city Nthatisi Modingoane opted now not to comment on the problem.

“The count number is before the courts and accordingly the city will anticipate the court manner,” Modingoane said.

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Ronnie Daniels

Ronnie Daniels

Zombie enthusiast. Internet guru. Unable to type with boxing gloves on. Bacon geek. Evil gamer. Spent 2001-2008 training junk food in Pensacola, FL. Spent 2001-2004 merchandising cod in Orlando, FL. Spent high school summers consulting about ice cream in Fort Walton Beach, FL. Spent 2002-2007 writing about crayon art in the government sector. Spent 2001-2008 building weed whackers in Los Angeles, CA. Spent 2001-2004 buying and selling saliva in Naples, FL.

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